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Industry Guide 24 January 2026 8 min read

Green Transition & ESG Grants Singapore: Complete Hub

Running a business in Singapore means growing pressure to adopt sustainability practices—from customers, supply chain partners, investors, and regulators. Singapore offers four main funding pathways for green transition: equipment upgrades (EEG), sustainability reporting (SRG), process improvement projects (EDG), and green financing (EFS-Green). This guide helps you identify which grant matches your sustainability goal, understand what each covers, and avoid common application mistakes.

Verified 24 January 2026

Running a business in Singapore means growing pressure to adopt sustainability practices—from customers, supply chain partners, investors, and regulators. Singapore offers four main funding pathways for green transition: equipment upgrades (EEG), sustainability reporting (SRG), process improvement projects (EDG), and green financing (EFS-Green).

This guide is written for business operators who want clarity fast:

  • Which grant matches your sustainability goal
  • What it can fund (and what it won’t)
  • The simple steps to apply without getting rejected

Best-Fit Grants for Green Transition

Start Here (Quick Pick)

  • You want to replace old equipment with energy-efficient models (LED, air-con, refrigeration, kitchen equipment) → EEG
  • You need to prepare your first sustainability report (ISSB compliance, ESG disclosures) → SRG
  • You’re implementing a larger green transformation (carbon reduction project, sustainability certification, green supply chain) → EDG
  • You need financing for green capital investments (renewable energy, major efficiency upgrades, sustainable infrastructure) → EFS-Green
  • You want ESG tracking software (carbon accounting, sustainability reporting platform) → PSG (Carbon & ESG Management category)

Eligibility & Timing Rules

  1. Apply before you pay or sign. Deposits, invoices, or signed contracts before submission can make you ineligible.
  2. Use pre-approved equipment where required. EEG Base Tier requires equipment from the pre-approved list.
  3. Different grants have different company size requirements. SRG requires listed company status or S$100M+ revenue; EEG requires eligible sector SSIC codes.
  4. No double-dipping. Same expense cannot be claimed under multiple grants, but different project components can use different grants.

Top Grants for Green Transition

1) Energy Efficiency Grant (EEG)

Use EEG when: you’re upgrading to energy-efficient equipment to reduce utility costs and carbon footprint.

Good fit examples

  • LED lighting systems (replace fluorescent or halogen lighting)
  • High-efficiency air conditioning (inverter systems, variable refrigerant flow)
  • Commercial refrigeration (display chillers, walk-in freezers with better efficiency ratings)
  • Kitchen cooking equipment (energy-efficient ovens, fryers, steamers)
  • Variable speed drives (for motors and pumps)
  • Electric vehicles / forklifts (replacing diesel equipment)

How much

  • Base Tier: Up to S$30,000, with 70% support for SMEs and 30% for non-SMEs (valid until 31 Mar 2026)
  • Advanced Tier: Up to S$350,000 (for projects with 350+ tonnes lifetime CO2 abatement)

When

  • Apply before purchase or installation
  • Equipment must be from pre-approved list (Base Tier)

How (fast path)

  1. Check the pre-approved equipment list on GoBusiness for your equipment type.
  2. Get quotes showing energy efficiency ratings and cost (do not sign or pay).
  3. Submit via BGP (Business Grants Portal).
  4. After approval, purchase and install equipment.
  5. Submit claim with photos and receipts within one year.

Where


2) Sustainability Reporting Grant (SRG)

Use SRG when: you’re preparing your first sustainability report with ISSB-based climate-related disclosures.

Good fit examples

  • External sustainability consultancy (ESG strategy, materiality assessment, report drafting)
  • Third-party assurance services (independent verification of sustainability report)
  • ESG software and tools (data collection platforms, carbon accounting systems)
  • Sustainability training for staff (ISSB standards, ESG reporting methodology)
  • Transition to ISSB compliance (IFRS S1 and S2 standards)

How much

  • Up to 30% of eligible costs
  • Capped at S$150,000 per company (one application only)

When

  • Apply before project starts (no work commenced, no contracts signed)
  • Must be preparing your first ISSB-compliant report
  • Must apply before your mandatory compliance deadline

How (fast path)

  1. Confirm eligibility: SGX-listed (non-STI) OR S$100M+ annual revenue.
  2. Get consultant/vendor quotations with detailed scope breakdown.
  3. Submit via BGP with financial statements and quotations.
  4. After Letter of Offer, complete project and publish report.
  5. Engage external auditor for claim verification, then submit claim.

Where


3) Enterprise Development Grant (EDG) — Green Projects

Use EDG when: you’re implementing a larger sustainability transformation (carbon reduction, green certification, sustainable process redesign).

Good fit examples

  • Carbon footprint reduction projects (process redesign, waste heat recovery, renewable energy integration)
  • Green certification (ISO 14001, B Corp, industry-specific sustainability certifications)
  • Sustainable supply chain (supplier sustainability assessment, green procurement systems)
  • Circular economy initiatives (waste reduction, recycling systems, product lifecycle improvements)
  • Sustainability capability building (strategic planning, roadmap development)
  • Clean technology implementation (beyond standard equipment—custom solutions)

How much

  • Up to S$500,000 funding support
  • Typically 50–70% co-funding for SMEs
  • Processing time: 8–12 weeks

When

  • Apply before starting the project
  • Requires a project plan with clear sustainability outcomes

How

  1. Define your sustainability project and expected outcomes (carbon reduction, efficiency gains, certification).
  2. Get vendor quotes for consultancy, equipment, training, and professional services.
  3. Prepare a project plan showing how changes improve environmental performance.
  4. Submit via BGP with business case and supporting documents.

Where


4) Enterprise Financing Scheme — Green Loan (EFS-Green)

Use EFS-Green when: you need financing for larger green capital investments that exceed grant caps or require loan funding.

Good fit examples

  • Renewable energy installations (solar panels, energy storage systems)
  • Major facility upgrades (green building retrofits, carbon-neutral operations)
  • Green fleet transition (electric vehicle fleet, charging infrastructure)
  • Sustainable manufacturing equipment (large-scale efficiency investments)
  • Carbon reduction infrastructure (emissions capture, recycling facilities)

How much

  • Government risk-share: Up to 80% (enhanced from standard 70% for green initiatives)
  • Loan quantum varies based on project scope
  • Interest rates determined by Participating Financial Institution (PFI)

When

  • Apply through a Participating Financial Institution (bank)
  • For capital investments that need loan financing

How

  1. Identify your green financing need and project scope.
  2. Approach a Participating Financial Institution (major banks offer EFS).
  3. Submit loan application with green project documentation.
  4. Bank evaluates creditworthiness; EFS risk-share automatically applies.

Where


5) Productivity Solutions Grant (PSG) — Carbon & ESG Management

Use PSG when: you want pre-approved ESG software for carbon accounting and sustainability reporting.

Good fit examples

  • Carbon management platforms (Scope 1, 2, 3 emissions tracking)
  • ESG reporting software (GRI, TCFD, ISSB-aligned reporting)
  • Sustainability data collection tools (automated data aggregation)
  • Carbon accounting automation (emission factor matching, audit trails)

How much

  • Up to 50% of eligible costs
  • S$30,000 annual cap per company (1 Apr–31 Mar grant year)

When

  • Apply before any payment or contract signing
  • Processing time: ~6 weeks

How (fast path)

  1. Browse pre-approved ESG solutions in the PSG catalogue (5 vendors available).
  2. Get vendor quote addressed to your ACRA entity name.
  3. Submit via BGP with financials and quote.

Where


Green Transition Scenarios & Which Grant to Use

Business ScenarioGrantFundingTimeline
Restaurant replacing kitchen equipment with energy-efficient modelsEEGUp to S$30K (70%)4–6 weeks
Retail store upgrading to LED lighting and efficient air-conEEGUp to S$30K (70%)4–6 weeks
Manufacturing facility implementing large-scale energy efficiencyEEG AdvancedUp to S$350K (70%)8–12 weeks
SGX-listed company preparing first ISSB sustainability reportSRGUp to S$150K (30%)10–14 weeks
Large company (S$100M+ revenue) needing ESG consultancySRGUp to S$150K (30%)10–14 weeks
SME implementing carbon reduction and ISO 14001 certificationEDGUp to S$500K (50–70%)8–12 weeks
Company financing solar panel installation for factoryEFS-GreenLoan (80% risk-share)Bank-dependent
SME wanting carbon accounting softwarePSGUp to S$30K (50%)6 weeks

Green Transition Pitfalls to Avoid

1. Wrong grant for your company size

  • SRG requires SGX listing OR S$100M+ revenue—most SMEs do not qualify
  • If you’re an SME wanting sustainability support, start with EEG or PSG instead

2. Equipment not on pre-approved list (EEG Base Tier)

  • EEG Base Tier only covers equipment on the pre-approved list
  • Check GoBusiness equipment list before requesting quotes
  • For custom equipment, consider EEG Advanced Tier (requires 350t CO2 savings demonstration)

3. Starting before approval

  • Do not sign contracts, make deposits, or start work before receiving Letter of Offer
  • Pre-purchased equipment is not eligible for reimbursement

4. Confusing SRG with PSG Carbon Solutions

  • SRG: For preparing your first ISSB sustainability report (large companies only)
  • PSG Carbon Solutions: For carbon accounting software (SMEs eligible)
  • Different eligibility, different purposes

5. Missing sector requirements (EEG)

  • EEG requires specific SSIC codes: Manufacturing (10–32), Food Services (56), Retail (47), Construction (41–43)
  • Home-based businesses and charities are not eligible

6. Underestimating documentation for EDG

  • EDG requires detailed project plans with clear sustainability outcomes
  • Vague applications (“reduce carbon footprint”) get rejected
  • Be specific: which processes, what equipment, what metrics, what timeline

7. Thinking EFS-Green is a grant

  • EFS-Green is a loan with enhanced risk-sharing, not a grant
  • You must repay the loan with interest
  • Government shares default risk with bank, but borrower remains liable

Grant Decision Guides

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Equipment & Solution Guides

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